US 7-Year Treasury Yield Hits 5.085%, Highest Since 2009, as Demand Softens
The U.S. Treasury auctioned $44 billion in 7-year notes on September 25, with a high yield of 5.085%, the highest since the bond was reintroduced in 2009. Demand was weaker than expected, as the yield exceeded the pre-auction when-issued level of 5.078%. The bid-to-cover ratio of 2.42x was below the six-auction average of 2.49x. Primary dealers took 12.5% of the issue, while indirect bidders' allocation fell to 57.2%. Market reaction was muted.
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US 7-Year Treasury Auction Yield Hits Highest Since 2009 at 5.085%
The U.S. Treasury sold $44 billion in 7-year notes at a high yield of 5.085%, the highest since the bond was reintroduced in 2009. The yield exceeded the pre-auction when-issued level of 5.078%, indicating weaker demand than expected. Primary dealers took 12.5% of the auction, up from the previous sale, while indirect bidders' allocation fell to 57.2% and direct bidders rose to 30.2%. The bid-to-cover ratio of 2.42x was below the average of 2.49x for the prior six auctions. Market reaction was muted, with little change in pre-auction yields after the results.
US 7-Year Treasury Auction Yield Hits Highest Since 2009 at 5.085%
The U.S. Treasury auctioned $44 billion in 7-year notes on September 25, with the high yield reaching 5.085%, the highest since the bond was reintroduced in 2009. The yield was slightly above the pre-auction trading level of 5.078% at the 1:00 PM New York time deadline, indicating demand was weaker than expected. The pre-auction yield was nearly unchanged on the day, and the market showed little reaction to the auction results. The report is attributed to financial news outlet CLS (Cailianshe).
Read sourceU.S. 7-Year Note Auction Bid-to-Cover Ratio Falls to 91.11% from 97.63%
The U.S. Treasury's auction of 7-year notes on September 24 saw the bid-to-cover ratio, measured as the percentage of awarded bids at the high yield, drop to 91.11%. This is a decrease from the previous auction's ratio of 97.63%, indicating a slight softening in demand for the medium-term government debt. The data, released by the U.S. Treasury, is a key indicator of investor appetite for U.S. sovereign debt. The lower percentage suggests that a smaller proportion of bids were accepted at the highest yield, which can reflect changing market conditions or investor sentiment regarding interest rate expectations and economic outlook.
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U.S. Treasury 4-Week Bill Auction Yield 3.850%, 8-Week Yield 3.990%
On September 24, the U.S. Treasury conducted auctions for 4-week and 8-week Treasury bills. The 4-week bill auction resulted in a high yield of 3.850% with a bid-to-cover ratio of 2.61, indicating demand relative to supply. The 8-week bill auction yielded 3.990% with a stronger bid-to-cover ratio of 2.76, suggesting higher investor demand for the longer maturity. These results reflect current short-term borrowing costs for the U.S. government and market appetite for short-dated securities. The data is reported by Chinese financial media outlet Cailianshe, citing official Treasury auction results.
Read sourceUS 4-Week Treasury Bill Auction Award Rate Allocation Drops to 54.97%
The U.S. Treasury's auction of 4-week bills for the period ending September 24 saw the award rate allocation percentage fall to 54.97%, down from a previous reading of 69.59%. This data point, reported by financial data provider Jin10, indicates a significant shift in the proportion of bids accepted at the auction's awarded yield. The decline suggests changing demand dynamics in the short-term government debt market, potentially reflecting shifts in investor appetite for very short-dated securities or adjustments in liquidity preferences. The figure is a key indicator for money market participants, offering insight into the supply and demand balance for Treasury bills.